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05.13.2008 4:46 pm

What should employers be doing about rising insurance costs?

St. Louis Post-Dispatch

About 12 days after I turned 40, I started to notice that I was having trouble concentrating on the newspaper. Couldn’t figure out why it was so hard to pay attention to the stories I was reading. I realized, too, that I wasn’t reading books as often.

Then I remembered. I am now 40. My vision is going. Sure enough, I got eyeglasses for the first time about a month later. And I was happy that my company offered vision coverage as part of my health insurance.

Likewise, the dental coverage has been nice. My daughter just ended five years of braces; I expect my son will be starting soon enough.

But increasingly, dental and vision coverage are among the first to go when employers try to figure out how to control their costs — especially health insurance costs.

According to our story for Wednesday’s Post-Dispatch, “Only about half of the nation’s employers offered dental coverage in 2006. In the Midwest, it drops to 45 percent, according to the Kaiser Family Foundation, one of the nation’s largest health think tanks.”

Martin said it’s important to remember that unlike health insurance, dental coverage is not meant to provide catastrophic coverage. “We’re covering low cost high frequency services, medical’s covering high-cost, low-frequency services,” said Pam Martin, COO of Delta Dental. “Medical is true insurance, we’re providing financial assistance.”

Does your employer provide dental or vision coverage? Do you manage without it? How should employers deal with health insurance costs?

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47 comments

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Ryan,

And Americans often travel to Europe for specialized treatment. Some go to other countries to get a better deal (see medical tourism), some go to move to the front of the line (see organ trading). But what all these people have in common isn’t Nationality – it’s money.

The rich will always go where they want, and get the treatment they desire. It’s not those people we’re talking about – it’s the poor and the working class.

Go-Fish,

Fascinating comment. I can certainly see how the myriad state laws could make doing business a confusing mess. It’s no wonder that insurance companies only practice in a few states. I do have a question; do you see anyway other than federal intervention to consolidate these rules and laws? If the Feds made it so that every insurance company could practice in every state and they all operated under the same rules, do you think this would lower costs?

— For the love of money...
12:45 pm May 14th, 2008

For the love of money…. It is YOUR big government that bails out the corporations and funds unwarranted special interest projects with our tax dollars. When you worship government you get what you asked for. Libertarians, like me, think excessive government intrusion is wrong at any level. And, no, we don’t say that government has no place at all in our society. We just recognize that government has grown far beyond its logical and constitutional boundaries in both foreign and domestic activities. Nevertheless, socialism and huge government are here and expanding and you will have your nanny state. I wish you a long and healthy life so you can witness the effects when the math catches up with the Great Society.

— Bb
12:49 pm May 14th, 2008

Bb,

Are you still mad? Calm down, the first post wasn’t aimed at you and I’m sorry it struck such a nerve. I’m not saying that nationalized health care is the solution, all I was doing was venting about the people who would rather line their pockets than help the sick and the needy. I am especially incised by the ones who will cut aid to the poor and then act smug about it.

Perhaps Go Fish is right, and all we need to do is consolidate the insurance industry rules/laws. Increased competition and dealing with one bureaucracy (feds) rather than 51 (feds and all states) sure seems like a recipe to lower cost to me.

— For the love of money...
1:02 pm May 14th, 2008

It is beginning to seem that every topic in the last few days tends to leave everything up to the government. If we turn everything over to the government such as health care, refining, trash pickup, ect. we are turning ourselves into a society that we are going to regret. We have been fighting overseas for years to help people living in this type of environment. The last thing we need is to turn this county into another Russia,China,or, you get the picture. If the government take over health care, it will only lead to a shortage of doctors and nurses. Like it or not, some become good doctors because they are able to make enough money to provide and give their families a better life on top of being dedicated to helping people. There is nothing wrong with that. If their salary’s are controlled by the government, they may not be so eager to get into the medical field. No matter what your opinion is about the poor, rich & middle class. We need them all to remain a free country. We can’t constantly take from those that want to work and make money and give it to those that don’t.

— Tom
1:49 pm May 14th, 2008

Slugger votes Right? Who knew she had time or inclination, going to tacky protests, and complaining about JohnH’s LOI (who we all know is above reproach, being the business banker mogul and socialite hostess she is).

As a worker, I wouldn’t consider working for a company that doesn’t provide health insurance. But it’s obvious that as a cost of doing business, health care has spiraled out of control. I don’t think governmental bureaucracy is the answer to controlling costs.

— Ryan A
1:51 pm May 14th, 2008

For The Love of Money: I seriously was unaware that it was largely only the “rich” that traveled into the US from Canada to expedite treatment. I was under the impression that it is done frequently by Canadians whose medical conditions will not allow them to wait in long lines to see a Canadian-based physician, and then wait in longer lines for treatment–all due to the scarcity of physicians in Canada.

— Ryan On The Euphonium
1:53 pm May 14th, 2008

For the love of money… You bet I’m still mad. If the Colonials had not been mad we would still be English subjects. And I won’t be calming down as long as the government worshipers are mortgaging my grandchildren’s’ futures to the Chinese to implement their flawed vision of Utopia. Marxists have tried for a century, but have yet to make it work. If government supremacy is better than the U.S. Constitution, then pay as you go instead of burdening future generations with the liabilities. Deferring taxes with deficit spending and embedding taxes in prices to conceal the burden hides the true costs and defrauds the public. But it sure works to buy votes from those looking for a “free” ride. Unfortunately their grandchildren will be paying their fare along with their own. Yep, every taxpayer should be mad.

— Bb
2:01 pm May 14th, 2008

Health insurance has been kept out of the tax base for years by business. USA has one of the lowest tax rates for business of the industrialized world and consequently, the worst health care of the industrialized non-emergent world as well. Do what the other industrialized countries have done, tax the businesses that prosper in the free environment that supplies the workers. Offer free healthcare to all, have a single payer (the government) provide payment and regulate rates for services. Let the insurance companies come to grips with a commoditized market and sector shrinkage that causes massive employment (or un-employment) shifts. The population is safe and healthy. Could this cause any speedier loss of jobs? I doubt it. Check with our neighbors in France, England, Germany, Japan, Australia, Sweeden and Canada. It works for them. If it didn’t, we would see wholesale immigration from those countries instead of Latin America. Take healthcare out of collective bargaining agreements, employment contracts, and corporate benefits. It is the only way to clear up this mess. Band aiding this problem to suit one party over another will only prolong the pain and bankrupt this nation. These other countries are competitive with their benefits and payment structures follow their examples! Their life expectancy and quality of life should be our goals!

— michael stewart
2:55 pm May 14th, 2008

Go-Fish,
So you like McCain’s proposal. What if you or someone in your family have or get a pre-existing condition? No one will sell you a policy. Why doesn’t that bother you? People get rejected for just about anything: bad knee, enlarged prostate, asthma, high blood pressure, yeast infection, depression, high cholesterol, etc., etc.

If the number of uninsured jumps from 50 million to 100 million, do you just feel that those people who aren’t perfectly healthy don’t deserve health inusrance? Even if you or someone in your family become one of those uninsured?

— Lisa12
3:06 pm May 14th, 2008

Ryan,
The US insurance companies work hard to perpetuate the myth that Canadians are coming to the US for care and hate their system. It’s just not true.

Phantoms In The Snow: Canadians’ Use Of Health Care Services In The United States
This paper by Steven Katz and colleagues depicts this popular perception as more myth than reality, as the number of Canadians routinely coming across the border seeking health care appears to be relatively small, indeed infinitesimal when compared with the amount of care provided by their own system.

[O]nly 0.11 percent (20 of 18,000 respondents) said that they had gone there for the purpose of obtaining any type of health care

The following is from the Physicians for a National Health Programw website:
Surveys show that Canadian doctors are far happier with their system than we are with ours. According to a 1992 poll, 85% prefer their system to ours; 83% rate the care in Canada as very good or excellent, and most physicians would urge their children to enter the profession. Fewer than 300 out of Canada’s 50,000 physicians emigrate to the U.S. each year, and a survey of doctors who have practiced in both nations shows a clear preference for the Canadian system.

Surveys show very high patient satisfaction in Canada. 96% prefer their system to ours, and 89% rate care good or excellent (up from 71% 4 years ago).

— Lisa12
4:22 pm May 14th, 2008

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